The Jupiter India fund only has a one-year track record, but fund manager Avinash Vazirani has been investing in the Indian equity market for over 12 years and was previously chief investment officer (South Asia and Africa) of BNP Paribas Asset Management. He describes himself as a bottom-up, pragmatic, GARP (growth at a reasonable price)-style investor.
The Jupiter India fund aims to achieve long-term capital growth primarily through investment in companies which operate or reside in India, but may also invest in companies based in Pakistan, Sri Lanka and Bangladesh, and in countries which derive a significant proportion of business from or within India.
Mr Vazirani is a high conviction investor who is happy to build up large positions and run with them for a long time. While he is very price conscious, he is willing to pay a higher multiple for a stock if the earnings growth is high enough to more than compensate for this. He aims to identify stocks where there are strong growth prospects which have not been priced fully by the market. He also invests in deep value stocks where he feels there is a catalyst for a re-rating.
The manager's style makes this a high risk fund choice for India that may pay off over time.
After the Indian election result, Mr Vazirani said: "Unlike other parts of the world, Indian economic fundamentals are supported principally by domestic demand. Therefore, a reinvigorated drive for economic reform could see better-than-forecast GDP growth. Currently predicted at 5 per cent to 6 per cent for this year, we believe it could well reach 7 per cent. Moreover, domestic mutual funds and foreign institutions have been generally underweight Indian equities. The amount of investor cash sitting on the sidelines could, therefore, provide additional support to the market."
| Jupiter India Acc | |||
| PRICE | 46.36p | SHARPE RATIO | n/a |
| SIZE OF FUND* | £44.94m | 3-MONTH PERFORMANCE | 43.01% |
| No OF HOLDINGS | 58 | 6-MONTH PERFORMANCE | 50.03% |
| SET UP DATE | 29 Feb 08 | 1-YEAR PERFORMANCE | -5.31% |
| MANAGER START DATE | 29 Feb 08 | TOTAL EXPENSE RATIO* | 1.83% |
| TURNOVER | YIELD | 0% | |
| VOLATILITY | n/a | MINIMUM INVESTMENT | £500 |
| TRACKING ERROR | n/a | MORE DETAILS | www.jupiteronline.co.uk |
Source: Jupiter, www.ft.com/funds, Morningstar *
TOP 10 HOLDINGS
| Holding | % |
| Opto Circuits India | 6.12 |
| Cairn India | 5.53 |
| Bharti Airtel | 5.29 |
| Hindustan Unilever | 5.04 |
| Infosys Technologies | 4.89 |
| Sun Pharmaceutical Industries | 4.89 |
| Godfrey Phillips India | 4.63 |
| Rural Electrification Corp | 3.91 |
| Aditya Birla Nuvo | 2.5 |
| Oracle Financial Services | 2.38 |
TOP 10 SECTORS
| Sector | % |
| Consumer Goods | 22.13 |
| Financials | 16.33 |
| Health Care | 13.95 |
| Technology | 10.71 |
| Oil & Gas | 8.93 |
| Telecommunications | 8.34 |
| Industrials | 5.24 |
| Basic Materials | 3.29 |
| Consumer Services | 1.01 |
| Cash | 10.06 |
